Assessed the psychological impact of a traumatic environment on 796 children (aged 6-15 yrs) living in the occupied West Bank and Gaza Strip. Measures included an observed symptoms rating scale, the Nowicki-Strickland Locus of Control Scale for Children (Arab version), and the Coopersmith Self-Esteem Inventory. Ss seemed to experience specific conduct and psychological problems, although no serious pathological conditions were detected beyond those expected in the general population. Problems included disobedience, conflicts with others, sleep disturbances, fears, and depression. Ss received elevated self-esteem scores despite a high percentage of depressive symptoms.